Outsourcing to China in today’s market has a number of benefits for businesses. If you’re looking for a manufacturer and find that those in the U.S. just don’t seem to offer you what you want at the price you want, China can be a valid option. If you’re not certain what Chinese outsourcing can offer you, take a look at these four pros of doing business in China.
1. Lower Costs
One of the biggest reasons to outsource your manufacturing to China is the cost. You’ll find that Chinese companies often offer their services at a much lower price than those closer to home. Labor costs in China are often as much as 80% less than what you’d pay elsewhere, which results in much lower prices overall.
But there are more savings that go beyond what you pay for manufacturing. If your choice is between building your own manufacturing team or outsourcing, you save even more. You can greatly reduce your operating costs because you don’t have to worry about training, job turnover, paying benefits, or any of the other costs that go with hiring your own employees to handle manufacturing. Even when you factor in the shipping costs from China, you’re still saving a good amount of money.
2. It’s Easier to Expand
If you want to expand your own manufacturing capabilities, you have to build a new plant or add on to the current one. In China, however, expanding your production capabilities is often much easier. Many Chinese companies that handle outsourcing already have very large manufacturing centers or have multiple manufacturing plants. For those that don’t, you may be able to bring another company into the agreement to handle some of your manufacturing needs.
3. Move into Foreign Markets More Easily
If you’re planning on expanding your business into Europe or Asia, having your products manufactured in China makes sense. You’ll actually save on shipping costs if your products are made closer to the markets you plan on selling them in.
You’ll also benefit from having a Chinese partner you can discuss products with. This will give you insight into the Asian market and can help you diversify your product line with products that will do very well in that market. This insight can be invaluable in your growth and expansion.
4. Customers Aren’t Necessarily Looking for Brand Names
More and more customers are saying that they’re looking for a combination of a good price and good value, not the name on the product. For example, customers today aren’t necessarily looking to make an impression by having the latest brand name handbag or wearing clothing by a trendy designer. Instead, they’re more about dressing in a way that flatters them and fits their style regardless of what name is on the label.
This has been found to be true almost completely across the board. If something is a little cheaper, but the quality of the product doesn’t appear to be any less, that’s the product most customers will choose. With a Chinese manufacturer, you can take advantage of this by passing on the savings to your customers. They’ll reward you by picking your product over the more expensive brand name.
By outsourcing to China, you can take advantage of these benefits and watch your profits soar while your costs shrink.
Thinking of outsourcing your manufacturing to China? See how Baysource can help.